A network access token is a digital asset that grants its holder permission to utilize specific services or resources within a decentralized network or application. These tokens function as a form of payment or credential, enabling users to interact with the network’s functionalities, such as computing power, storage, or data access. Their primary purpose is to provide utility within the ecosystem, rather than serving solely as a speculative investment. Such tokens are fundamental to the operation and governance of many blockchain-based platforms.
Context
The classification of network access tokens is a key aspect of regulatory discussions, particularly concerning whether they should be treated as securities or commodities. Regulators examine the extent to which the token’s value is derived from its utility versus speculative expectations. The evolving landscape necessitates clear distinctions to provide certainty for developers and users, fostering responsible innovation in decentralized applications.
The staff's targeted no-action relief establishes a critical functional utility test for network tokens, de-risking infrastructure-focused issuance models.
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